Creditors report reveals Heart of Midlothian debts totalling £28.5m

Heart of Midlothian owes its creditors a total of £28.5m, a report by administrators BDO reveals.

Hearts will gather its creditors together in August to discuss the future for the heavily indebted club.

The Tynecastle club has been in administration since June 19 and administrators BDO have drawn up a list of those owed money by the club, with debts totalling just under £28.5m. The creditors have been called to meet BDO on August 12.

Shareholders Ukio Bankas and UBIG are owed around £25m of the debt, making any exit via a CVA dependent on their say so.

In the report, distributed to the companies and individuals who are owed cash by the Edinburgh football club, BDO reveals that rescuing Hearts through a CVA is its first objective.

It lists achieving a better result than liquidation as the second priority, with winding up the club and realising property values the last resort in the event that the other two are not possible.

While any agreement on reaching a CVA is in the hands of those in Lithuania, any post-administration owner of Hearts would remain liable for the footballing debt accrued.

Some £81,289 is owed in various amounts to Ayr United, Kaunas, Liverpool, Musselburgh Athletic, Livingston, Stenhousemuir and Rangers, plus wage arrears due to players, making the total £535,000.

The club owes HM Revenue and Customs £1.8m, a figure decided at a court tribunal earlier in the year.

Since entering administration the club has generated £1.27m of income, mainly from season ticket sales which raked in £813,000 from supporters.

Hearts have banked £103,000 from sponsors Wonga, £146,700 in hospitality sales and £100,000 in compensation for the transfer of Arvydas Novikovas.

In the same period expenditure was £310,000, with wages and salaries accounting for £212,000 of that total.